ITAT, Delhi has dismissed the appeal of Revenue dept. and upheld the impugned order of the Commissioner (Appeals) deleting disallowance of project management expenses, certain interest expenses and software expenses.

In respect of project management expenses, assessee had paid certain amount for manpower supply to a foreig...

The assessee, an Indian company, was making payments to a German individual resident which according to the Revenue fell under the category of ‘Fees for technical services’ as per Section 9(1)(vii) of the Income Tax Act and Article 12 of the Indo-German DTAA and thus, the assessee was under obligation to deduct tax at source as per...

Supreme Court has held that software development charges relatable to technical services provided outside India are to be excluded from ‘total turnover’ while working out deduction under Section 10A of Income Tax Act.

The main issue revolved around the claim of certain expenses attributable to ...

In a recent judgment, Delhi High Court has held that bi-annual or annual payments, being capital payments for a limited/specific period towards acquisition of lease hold rights, are not subject to TDS.

The assessee had entered into 90 years long term lease with Greater Noida Industrial Development (GNOIDA). According to l...

This reporting requirement has been brought in this budget in line with the recommendations of BEPS Action 13 and effective from April 1, 2016 (AY 2017-18). As per Sec.286(2) , an Indian company who is a Parent entity (Parent ) or an Alternate Reporting entity (Alternate) which is resident in India should file the Country-by-Country report for...

Does the Income Tax Appellate Tribunal (ITAT) have power to extend stay beyond 365 days? The Delhi High Court in Pepsi Foods Pvt. Ltd v. ACIT, WP(C )1334/2015 decided on 19-5-2015 held that when the delay in disposing of the appeal is not attributable to the assessee, the Tribunal has the power to grant extension of stay beyond 365 days.
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28 February, 2015
The Finance Minister presented the Finance Bill, 2015 today. While no major relief has been announced on personal taxation, corporate taxes are proposed to be rationalised in a phased manner to bring down the rate of taxation. However, for the present, no change has been announced on rates of tax for companies. Incentives for investment in notified backward areas of Andhra P...

16 January, 2014
In its recent decision dated 10-1-2014, [Tesco International Sourcing v. DDIT] the ITAT (Bangalore) had occasion to examine ‘Purchase of goods in India for the purpose of export’. Earlier this year the Karnataka High Court in Nike Inc, had observed that the purpose of the said clause was to encourage exports and the activity of the assessee in assisting Indian manufacturers ...

13 December, 2013
Is loss on derivative transactions assessable as business loss? This was the question before the Tribunal in Platinum Asset Management Ltd v. DDIT. The department treated loss from derivative transactions as business loss as against the assessee’s claim of the same being capital loss. The assessee argued that was eligible to set off the same against short-term capital gains ...

21st June, 2013
The Karnataka High Court examined the issue of income arising or accruing or deemed to arise or accrue in India when certain allied activities like quality control are undertaken while acting as liaison between manufacturers and the head office. [CIT v. Nike Inc, HC judgement dated 7-3-2013] The liaison office contended that no income is deemed to accrue or arise to a non-resi...